Fixed income instrument

chandniwadhwani92
Finance Junkie
Posts: 166
Joined: Mon Oct 06, 2014 7:36 am

Fixed income instrument

Postby chandniwadhwani92 » Sun Dec 21, 2014 6:10 am

in schweser it is given that modified duration is a linear extimate of relation between bond price and ytm??????
What does linear extimate means nd curvlinear means
What is an exact difference between modified duration and approximate modified duration?????

edupristine
Finance Junkie
Posts: 722
Joined: Wed Apr 09, 2014 6:28 am

Fixed income instrument

Postby edupristine » Fri Dec 26, 2014 12:34 pm

Yes, Linear means a straight line.
Duration can only measure straight relationship between bond price and yield.


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